According to the analysis, which is based on interviews and conversations with over 40 CEOs and chairmen of various UK fintech companies, diverse boards that include a diversity of experience, gender representation, and skill sets are essential for promoting long-term growth and innovation.

Still, a sizable percentage of poll participants voice concerns about skill shortages on their boards. Although most say their boards have the necessary knowledge and expertise in Gen AI, 47% feel these are inadequate.

Furthermore, only 42% of respondents think their boards possess the requisite fundraising knowledge. With only 22% of women represented among the top 50 fintech boards, gender diversity on UK fintech boards is still low and below the FCA's minimum requirement of 40% of women on boards.


Furthermore, 37% of the UK fintech companies examined had all-male boards, underscoring the need for more gender diversity in the industry's leadership roles.

The secret to success

Achieving scalable and sustainable growth for UK fintech requires diversified, long-term strategic input from boards, as explained by Anita Kimber, UK partner and leader of EY's fintech policy and ecosystem.

According to her, "achieving short-term growth and rapid innovation as they grow and scale is often the core focus of UK fintechs." The CEOs of UK fintech companies, however, made it clear to us that their boards' long-term counsel and strategic direction, supported by a variety of abilities, viewpoints, and ideas, is essential to the eventual success of their companies.

"Although the structure, function, and character of boards naturally change as a fintech grows, board members are most productive at all stages of development if they have a broad and in-depth awareness of both market dynamics and client needs. This is beneficial since they counsel and assist the CEO in advancing the goals of the company, generating profits, satisfying customers, and adhering to legal requirements.



Without a question, boards play a critical role in helping UK fintechs achieve scalable and sustainable growth. Moreover, our research shows that diversity in gender, ethnicity, and skill set can mean the difference between success and unrealized potential. The fintech industry in the UK is among the best in the world, and businesses stand to lose a great deal if they do not prioritize strategic direction, purpose, and diversity in all forms.

Provide suggestions in a report to hasten the process.

1. Throughout the board, choose a committed champion for consumer duty who will have a thorough awareness of both customer and regulatory needs.
2. Create a strategic "purpose" focus at the board level to encourage activities, uphold the culture, and draw in clients and investors. Put diversity first by encouraging broader ideas and thought processes, attaining progress, and changing the culture at the top.
3. Make AI the main priority and a growth engine for your company.
    

The CEO of Innovate Finance, Janine Hirt, emphasizes the vital role that strong boards play in maintaining the expansion of the fintech industry in the UK.

Eight in ten persons in the UK now say they regularly use at least one fintech tool. Fintech challenger banks, also known as alternative lenders, handle close to 60% of all SME loans in the UK, and the country holds 10% of the global fintech market share. Furthermore, UK fintech continues to draw more investment than all of Europe put together, even in the midst of a global investment slowdown.
 

But in order to guarantee that UK fintech keeps expanding, we think it's critical that businesses prioritize board effectiveness and diversity right from the outset and start assembling strong boards early in their scaling process. For this reason, among others, we are thrilled to collaborate with EY on this significant study verifying the vital role fintech boards play in long-term, steady growth.
 

"This unique report includes insightful perspectives and recommendations from industry experts, outlining best practices for creating and managing effective boards." Through this research, we seek to improve the fintech industry and shed light on board effectiveness for the benefit of investors, consumers, founders, and companies, ultimately fostering a more transparent and inclusive sector for all.